Pre Market Report, February 24, 2015 | Stocks and Commodities

February 24, 2015
Time: 8.45 am

Pre Market Report:

1. Yesterday's market fall is still puzzling.
2. There was no big negative news, no bad global cues and no selling by FIIs in cash market.
3. Yet market pressed panic button, Nifty future and Bank Nifty future both traded discount to corresponding indices.
4. Reliance is falling due to espionage issue.
5. Banks are falling anyway, ICICI has fallen 9% in this series.
6. Axis Bank is swinging between 545 to 595 range.
7. Yes Bank fell despite being included in Nifty.
8. That shows the weakness in Banking sector.
9. Markets are expected to open flat and trade that way with little bit of panic selling here and there until short covering sets in.
10. Nifty upside is capped now, there is no hope of crossing all time high before budget.
11. Nifty may not even cross 8900 before expiry.
12. Nifty may expire between 8700 and 8900.
13. Any meaningful short covering in Bank Nifty is the only hope now.
14. Though Bank Nifty fell nearly 250 points yesterday, out of money put options traded almost flat to negative.
15. So this option price indicates that the bottom is around here for Bank Nifty.
16. So today's trade will be an interesting one as some people expect short covering and some people look to short even on a small rise.